River City Blog

Inspections are a very important component of a real estate transaction. While the home inspection is rightly perceived as for the benefit of the buyer, it also offers a layer of protection for the seller and the listing and selling brokers involved in the transaction. It will be much harder for a buyer to claim that the seller should be liable for the condition of the home after the closing if the buyer had the home inspected.

I advise every home buyer to have a home inspection. All inspections should be performed by qualified inspectors. All houses, even newly constructed homes, are likely to have some issues that may need to be addressed.

Sellers should consider having a whole house inspection even before they put their property on the market. This way they may discover the defects and deficiencies that the buyer will eventually discover. Inspection issues are often used to renegotiate the terms of the sale. Here is what generally happens. A buyer and seller negotiate terms and conditions of the sale. Often they have gone back and forth with offers and counter offers. The buyer feels like they have gone as high as they can, the seller feels like they have come down as far as they can. Then along comes the inspector and produces a twenty page report pointing out numerous defects or deficiencies. Now the buyer wants repairs, or a monetary allowance, or they want out. The seller has already conceded as much as they are prepared to in negotiating the price, the sale could fall through. Had the seller had an inspection prior to marketing, they would have had the opportunity to correct those conditions they feel important or necessary. Then they would be in a position to set a price and to negotiate terms and conditions of a sale with relative confidence that they would not have to renegotiate after the buyer has an inspection. It is important to note that the seller must disclose known defects to a prospective buyer.

Real estate brokers have access to home buyer warranties. These warranties usually offer coverage for the buyer for a period of one year after the closing. Sellers usually have coverage during the period the property is listed. The warranty will not cover latent defects. However, they are proven to help homes sell for more money and in less time.

How much does a home inspection cost? Not nearly as much as not having one might!